Corporate FDs offer higher interest rates, but come with their own risks | Personal Finance
Many investors are often unaware of the fact that corporates also offer fixed deposits (FDs). So, even if you are a conservative investor, but want to boost returns by 1-2 percentage points, a corporate fixed deposit is a good option instead of a plain vanilla bank FD. Look up the table by Paisabazaar to know which corporate offers the best rate for your chosen tenure. The table also allows you to assess the risk of that corporate by looking up its creditworthiness, since interest rates depend on it. Some corporate FDs may also offer a lower initial deposit. However, one needs to also be mindful of the risks. For example, if the issuer runs into financial headwinds, it may be able to honour its interest or repayment obligations. What’s more, defaults are not covered by deposit insurance. Some corporate FDs may also impose restrictions on early withdrawals, or charge a penalty on them. This would make withdrawals in an emergency less attractive.
First Published: Jul 23 2026 | 6:57 PM IST
